Wealth

Sector Payment Analysis: Wealth

This report outlines the findings from a detailed examination of payment behaviour within the Wealth sector, encompassing a sample size of 201 distinct companies. Our objective was to analyse the financial reliability and settlement culture prevalent in this industry. The data indicates a remarkably healthy payment environment, characterised by prompt settlement habits and low credit risk. The central tendency metrics reveal a sector that operates with high efficiency; the average payment time stands at 22.5 days, whilst the median is even tighter at 20 days. This close alignment between the mean and the median suggests that the data is not heavily skewed by extreme outliers, portraying a stable and predictable cash flow environment for suppliers and partners operating within this sphere.

When we organise the data by distribution bands, the preference for rapid settlement becomes immediately apparent. An overwhelming majority of the analysed entities—166 companies, or 82.6% of the total sample—settle their invoices within the 0-30 day window. This places the bulk of the sector in the 'Fast' category. Furthermore, the interquartile range is recorded at a mere 13 days (spanning from the 15th to the 28th day). This narrow range indicates a high level of consistency amongst the companies; suppliers can generally realise their cash within a fortnight to a month of invoicing. Conversely, the percentage of companies falling into the 'Slow' (46-60 days) and 'Very Slow' (61-90 days) categories is negligible, totalling only 5.5% combined. Notably, there is a total absence of companies in the 'Critical' bracket (90+ days), which is a strong indicator of sector liquidity and responsible financial management.

Whilst the general trend is overwhelmingly positive, it is necessary to scrutinise the outliers to fully understand the range of behaviour. The top performers are exceptional, with 96 companies paying in under 20 days and the fastest entity settling accounts in just 3 days. However, despite the general stability, late payments remain a factor to consider; 17% of payments were classified as late relative to agreed terms, and the slowest payer took 73 days to settle. Although the standard deviation of 12.2 days is relatively low, it implies that whilst credit risk is minimal, it is not entirely non-existent. Stakeholders should simply remain aware that a small minority of firms do not favour the rapid payment cycles seen elsewhere in the sector.

Finally, it is crucial to contextualise these findings within their geographical distribution. The dataset is heavily centred on London, which accounts for 165 of the 201 companies (82%). Consequently, the payment behaviour described here largely reflects business practices within the capital. The South East, East of Scotland, North West, and South West represent a much smaller fraction of the sample. Therefore, whilst the data suggests a highly efficient sector, one must recognise that this efficiency is likely driven by the robust financial infrastructure and liquidity found in the London market. Overall, the Wealth sector presents a low-risk profile for creditors, with a strong cultural inclination towards prompt payment.